Question
A monopolist faces the price equation: P = 2,000 - Q, and total cost: C = 100,000 + 200Q + 0.8Q2. MR = 2,000 -
A monopolist faces the price equation: P = 2,000 - Q, and total cost: C = 100,000 + 200Q + 0.8Q2.
MR = 2,000 - 2Q and MC = 200 + 1.6Q
-Determine the price and output thatmaximize total revenue, and the level of profit.
-Determine the price and output thatmaximize profit,and the level of profit.
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
